Growth
Rent inflation in the UK has seen a significant slowdown according to a report from Zoopla. The report found that rent inflation had dropped from 6.5% in the second quarter of 2018 to 5.4% in the same period of 2019. This marks the lowest rate of rent inflation since the end of 2016, when it stood at 4.7%.
Despite this slowdown, rent inflation still outpaced earnings growth in the same period. Earnings growth was reported to be 3.9%, meaning that rents are still rising faster than wages. This could be a cause for concern for renters, as it means that they are likely to be paying more of their income on rent than before.
The slowdown in rent inflation is likely to be due to a number of factors. Firstly, the introduction of new legislation such as the Tenant Fees Act 2019 has made it more difficult for landlords to increase rents. Secondly, the increasing availability of rental properties has meant that tenants have more choice when it comes to finding a property, and this has put downward pressure on rents. Finally, the introduction of rent caps in certain areas has also had an impact on rent inflation.
The slowdown in rent inflation is good news for tenants, as it means that they are likely to be paying less of their income on rent than before. However, it is important to remember that rent inflation still outpaced earnings growth in the same period, so tenants should still be aware that their rent payments are likely to be taking up a significant portion of their income.
Overall, the Zoopla report shows that rent inflation has slowed significantly in the UK, but it still remains higher than earnings growth. This could be a cause for concern for tenants, as it means that they are likely to be spending more of their income on rent than before. It is therefore important for tenants to be aware of their rights and to ensure that they are getting value for money when it comes to their rental payments.